Behind the Wheel: Driving Mighty Auto Parts to Greater Heights

Name: Josh D’Agostino
Title: President & CEO
Company: Mighty Distributing System of America dba Mighty Auto Parts
Units: 94 domestic, 2 company owned, 9 international
Age: 49
Years in franchising: 9
Years in current position: 4

Josh D’Agostino has spent nearly two decades in the $400 billion automotive parts industry with the past nine years immersed in the franchise world. Since taking the helm of Mighty Distributing System of America (Mighty Auto Parts) four years ago, the president and CEO has seen the company grow to more than 100 domestic and international locations. D’Agostino keeps a clear and consistent vision to empower people, focus on customers and franchises, and lead with integrity.

When it comes to his leadership style, think Ken Blanchard. “I strive to be, and hope that I am, a servant leader in the style described in Ken Blanchard’s book, Leading at a Higher Level,” he says. He supports his team by providing resources, encouraging collaboration, and nurturing a culture that values performance, respect, and purpose. The “head cheerleader” approach has helped unify the company around its mission while encouraging innovation and accountability.

During the Covid-19 pandemic, D’Agostino and his team kept the company resilient, avoiding major disruptions and doubling down on Mighty’s unique high-touch inventory management services. His leadership style is collaborative but decisive, balancing data-driven decisions with team consensus when possible, and he knows how to make tough calls when needed.

When asked about the future, D’Agostino doesn’t hesitate to aim high: “Grow system and company revenue by 50% in five years, boost international growth, and be the No. 1-rated automotive-related franchise opportunity with happy, successful franchisees.”

He says he’s working on building more than just a business; he’s cultivating a culture where profitable franchises are run by engaged franchisees and employees who are proud to be part of the Mighty family.

LEADERSHIP

What is your role as CEO? I’m a head cheerleader, and a brand, franchisee, and customer ambassador. I help develop people and support them in achieving professional and company goals. I also manage the organization in a sound financial manner and provide strategy and direction for the Mighty System.

How has Covid-19 affected the way you have led your brand? We did not let Covid disrupt our business in any meaningful way. We certainly adhered to different state rules and regulations along with fulfilling employee and customer needs, but we mostly stayed the course of providing inventory management stocking services to our customers. Since Covid-19, supply chain remains a large challenge because of port delays, container shortages, volatile freight costs, and geopolitical conflicts. We’ve had to increase our inventory substantially to mitigate against supply chain delays and disruptions. We also do Zoom and Teams meetings regularly. Otherwise, we are focused on our differentiator of traditional, high-touch inventory management services.

Describe your leadership style. My job is to provide resources, motivation, and accountability to help my team achieve their goals. I want their input, I want differing opinions, and I want people who speak their minds and share their ideas. Collaboration and open discussion typically lead us to a better answer than a top-down approach. It’s in the name, “servant leader,” finding the balance between leading and serving.

What has inspired your leadership style? Previous managers and mentors have really taught me the most. During my career, I’ve learned what to do and what not to do by observing different management styles and evaluating the results. Employees get together to talk about their managers, as I did, and you can learn quite a bit by really listening. I’ve been fortunate to work for some really impressive people and tried to emulate and incorporate their styles into mine.

What is your biggest leadership challenge? The last 5%. So many projects get to 95% completion, but the last 5% is often the most difficult. Part of my position in holding the team accountable is to instill and nurture the killer instinct within others to finish the job.

How do you transmit your culture from your office to frontline employees? Share Mighty’s company values, lead by example, and repeat. If you want others to follow, you have to set a vision, live the values, and stay focused on delivering what we call “The Mighty Promise.” It’s a commitment to stay franchise and customer centric, delivering our unique service in an exceptional way, not just a satisfactory way. It’s not easy, by the way, but what makes it easier is hiring people who already fit the culture and value system.

How can a CEO help their CMO develop and grow? We have a vice president of marketing instead of a CMO, but it’s really about results. When it comes to marketing, you can get trapped by what looks flashy and feels good rather than what is leading to brand recognition and, ultimately, revenue. I work to help the marketing team contribute to overall company and Mighty System results in a tangible, measurable way. Marketing should ultimately lead to customer conversions and growth in sales.

Where is the best place to prepare for leadership: an MBA school or OTJ? On the job. I’m a fan of studying and reading about your craft, but you can do so while also working in the industry. Theory can teach only so much, but doing can teach almost everything. I’m always impressed by a well-educated person, and we have many on our team, but we have just as many employees with significant achievements in their careers without college degrees. I’m most interested in work ethic, values, commitment, and results. More often than not, it is proven on the job.

Are tough decisions best taken by one person? How do you make tough decisions? It depends on the situation, but I prefer soliciting opinions and thoughts from the team before making difficult choices. It’s best to have more information and general consensus before decisions are made. However, I do know when to step in and make final difficult calls when the team is struggling to come to conclusions or when an urgent situation requires timely direction.

Do you want to be liked or respected? I’ve never believed that these two things are independent of each other. Although not impossible, it’s tough to be liked when you’re not respected, and it can be difficult to be respected when you’re not liked. I think today’s employees want both. At Mighty, we work hard, but we also have fun and try not to take it too seriously at every moment. However, if you work too hard at being liked, you won’t be respected. You have to be tough with high expectations, and ultimately, most employees want to be challenged. It’s an ongoing effort to find the appropriate balance.

Advice to CEO wannabes: You need to want it. In addition, you need to have confidence that you have the ability and drive to do it and the humility to know you don’t know everything. There is no one else to turn to when times are tough and not heading in the direction you want. You’re responsible, and first and foremost, you have to be concerned about the health and well-being of your team, your franchisees, and their teams. That’s what a CEO signs up to do. You must also have a network of mentors. I reach out to mine regularly.

MANAGEMENT

Describe your management style: I asked two current team members and the previous president and CEO of Mighty. Here’s a summary: Thoughtful, listens to input from the team, personable with high expectations, challenges others to produce and perform at a high level, leads from the front with integrity, franchise focused, can get fired up at times, recognizes achievements, brings clarity and decisiveness.

Seriously, the previous description is what these three individuals said, and I’m honored by their words.

What does your management team look like? Mighty was led by the same four people for more than 20 years. When I joined, we began a process of purposeful succession planning as the leadership team retired. Today, we have an incredibly dedicated team with a CRO, director of IT, controller, VP of marketing, VP of operations, VP of franchise operations, VP of sales, VP of strategic accounts & international development, VP of product strategy, VP & general manager, Mighty Product Center, and director of warehouse operations, Mighty Product Center. Their dedication to Mighty is unmatched.

How does your management team help you lead? Mighty has done a fine job of hiring a leadership team aligned with our shared values of positive customer service, commitment to integrity and quality, respect for the individual, reward for performance, and focus on growth. Simply put, the team does what needs to be done within our culture and values. They know when to make the decisions themselves and when to get me involved. Values, professionalism, and commitment are never in question.

Favorite management gurus: Do you read management books? (please name): I almost exclusively read books about politics/political theory or business. My favorite business books over the years include Think and Grow Rich, Leading at a Higher Level, First, Break All the Rules, and Shackleton’s Way. I find that I go back to principles and concepts in these books regularly.

What makes you say, “Yes, now that’s why I do what I do!”? Every year, Mighty recognizes the best of the system during our annual awards banquet: Salesperson of the Year, Rookie of the Year, Operational Excellence, Franchise of the Year, and more. Every time, at least one winner gets on stage, fighting back tears. It’s absolutely amazing and humbling to see how much people love Mighty and being a part of our franchise system. I personally present Franchise of the Year, and it’s annually my favorite moment.

OPERATIONS

What trends are you seeing with consumer spending habits in your stores? Just about everything everywhere is more expensive, so consumers are trading down to save money. For example, people are choosing a 24-month battery instead of a 36-month battery, or they are looking for less expensive oil change options. Deferred vehicle maintenance is perpetual in our industry, but it gets worse in leaner economic times. Car counts are flat or down at many of our customers, and repair ticket averages are much the same. We experience these down periods from time to time, but usually, it is short-lived for our industry given that people need their cars and trucks to stay on the road. It’s critical to their lives.

How is the economy driving consumer behavior in your system? Our industry tends to grow in both good and bad economic times, but right now, we are seeing consumer malaise given the uncertainty. Continued inflation and now tariffs are encouraging caution when it comes to spending. However, new cars are pricey, interest rates are higher than many are accustomed to, and the average age of vehicles on the road is 12.6 years. Further, there’s a record number of 292 million registered vehicles that are more than 15 years old. These factors alone will cause our customers to continue to invest in their existing cars and trucks.

What are you expecting from your market in the next 12 months? I’m optimistic. Macroeconomics certainly influences our market, but vehicles are necessities and can only be ignored for so long. My outlook is a bit conservative for now. However, Mighty has so much to offer, and we have recently diversified into several other product categories and customer verticals. Mighty is nimbler than many of our competitors, so we really have no excuse. I always ask, “Are we doing business with everyone that buys auto parts, chemicals, and accessories?” Of course, not. So let’s get more customers!

Are your franchisees bullish or bearish about growth and adding additional units? Our franchisees are entrepreneurs, so they are almost always bullish about growth. Their spirit, perseverance, and commitment are simply incredible. Our system is primarily single-unit operators due to how we go to market and the size of territories. We operate on a route delivery schedule across 100 miles or so per territory, so multi-unit operators are not necessarily what we pursue. We have plenty of penetration to achieve in existing markets.

Are commodity/supply costs any cause for concern in your system? Absolutely. We operate in a huge market, competing with large, publicly traded companies like O’Reilly and NAPA, retailers like Walmart, locally owned auto parts stores, and everything in between. Our industry globally sources products, so we are regularly evaluating our supply chain and competitive pricing activity. In addition, we’re managing significant existing tariffs and now new tariffs. We have to diligently manage these costs to stay competitive in a highly fragmented market.

In what ways are political/global issues impacting the market and your brand? The word of the year is “tariffs.” We must successfully manage these cost increases to help our franchises remain competitive in the market against numerous other distributors. The entire market will see these price increases, so parity will likely remain. In addition, armed conflict in certain regions hurts the predictability of supply chain lead times and costs. We have decided to build safety stock in our inventory to mitigate against these challenges. Ultimately, uncertainty often causes inaction by the consumer, but it is Mighty’s job to find opportunities in this environment and persevere.

TECHNOLOGY

How much influence does your IT department have on your brand? Quite a bit. Many of our technology tools are customer facing, and the experience consumers have with them is a direct reflection of Mighty. Ease of use, effectiveness of results, and speed are critical to complementing the high-touch nature of our service model.

How have your company’s tech tools changed over the past five years? The advancement of technology, like e-commerce and AI, and customer use of these tools have accelerated over the past five years. Further, customer expectations have increased. Like so many other companies, Mighty is investing more dollars in technology. We are focused on resources that our customers use. We want to complement our high-touch service, not replace it, while improving productivity and making it easier for our customers to do business with our franchises.

How does technology influence your decisions? It depends on what we’re considering. Does it improve productivity, save money, or enhance our service? If so and if we have the proper budget and resources allocated and available, we’ll seriously consider an investment. With technology costs having grown greatly these past few years, determining ROI is more important than it was a few years ago.

Are you using AI? How? We are in the beginning stages of AI at this time. Right now, we are using it for communications, summarizing meetings and calls, and gathering data. We have identified a project lead within Mighty to put together a road map identifying needs from basic to advanced levels. We’ll then start implementing these tools to provide an economic value to the Mighty System and to enhance customer experience.

How do you measure your ROI on technology investments? Tough question. We consider two things: Are there any direct cost savings and/or revenue generation resulting from a tech investment, and/or does the technology make something easier for our customers and reduce friction? The former is easier to determine when comparing one cost to another, but the latter is more about making ourselves stickier to our customers by being easy to work with and accommodating to their needs. The ROI here is often a judgment call based on customer needs and industry trends.

How did/do you create a culture where use of technology advancements is welcome and used? Living in Atlanta, I fly Delta regularly. I remember when the website changed, and I was annoyed. It wasn’t long until I couldn’t recall what the old site was even like or what I preferred about it. Often, people want change until the change actually comes! I try to remember my personal experience so that we’re not deterred. We try to stay focused on technological changes that increase productivity or provide value to our franchises and end-user customers. We work to avoid making a technology change for change’s sake. It must have a clear upside for our franchisees, customers, and Mighty overall. Initially, the value may not be clear to users, but if we choose correctly, the benefit will soon surface.

PERSONAL

What time do you like to be at your desk? Around 7:45 a.m.

Exercise in the morning? Wine with lunch? I travel regularly, so I tend to exercise in the morning when on the road and during the weekend when at home. I also play in two softball leagues almost all year long. Sweet tea—my nemesis—with lunch.

Do you socialize with your team after work/outside the office? We entertain guests and franchisees quite a bit, so socializing outside of the office is fairly common in that context. Mighty holds a kickoff party each new year with spouses or significant others, and we organize multiple social events in the office to celebrate record months, life events, birthdays, and sometimes just for fun.

Last two books read: Omnipreneurship by Amr Al-Dabbagh, a large distributor of ours overseas, and Willie Nelson’s Letters to America. I do love Willie.

What technology do you take on the road? My laptop and phone. Typically, it’s everything I need.

How do you relax/balance life and work? It’s difficult at times because my brain is always churning, and I’m almost never not connected. It’s simply part of the position. When I’m home, however, I put the phone down and focus on family and community. I volunteer, exercise, cook, travel, play softball, and socialize with friends. I thoroughly enjoy watching my Texas Longhorns although that’s not always relaxing, and there’s nothing like going to a Major League baseball game.

Favorite vacation destination(s): Destin, Florida, is a must each year. As a family, we also loved Oaxaca, Mexico, and Quebec City, Canada.

Favorite occasions to send employees notes: We recognize birthdays, and I handwrite and personalize work anniversary notes each month for my team. I also send emails for jobs well done for specific events, and I could get better in this area.

Favorite company product/service: Our headlight restoration kit. If you have headlights that have yellowed and you’re willing to invest about fifteen minutes of time, you will have crystal clear headlights with no equipment needed. It’s like magic!

BOTTOM LINE

What are your long-term goals for the company? Continue to increase franchise profitability, grow system and company revenue by 50% in five years, and boost international growth. We want to diversify our product offering with car appearance products, janitorial-sanitation suppliers, and heavy duty. We also want to be the No. 1-rated automotive-related franchise opportunity with happy, successful franchisees and employees who love Mighty and what they do each day.

How has the economy changed your goals for your company? We’re a bit more conservative right now on our top-line forecast for budgeting purposes, but frankly, we have so much to offer in our $400 billion industry. We have plenty of room to capture market share and outperform the industry, and we will.

Where can capital be found these days? Fortunately, Mighty doesn’t need capital, and our franchisees are well funded with existing, local relationships. Our primary banking relationship is beneficial.

How do you measure success? Are those around me successful and achieving both personal and professional goals? If the answer is yes, then I feel I’m meeting my responsibility. Success in business consists of two things: happiness and profit. Are my franchisees both happy and profitable? Are my employees happy, successful, and committed? Am I helping Mighty franchisees reach their goals and, in turn, leading my company to its goals? If the answers are yes, then I feel fulfilled.

What has been your greatest success? When I first joined Mighty in 2016, we were reviewing the financials of select franchisees. One, in particular, stood out to me, and I volunteered to get involved. It consisted of two partners, and we uncovered that one was stealing from the business and effectively bankrupting it. We devised a plan with the minority partner to save the business against all odds, but we did it. Six years later, that franchise won Mighty’s Franchise of the Year, paid off all debt, and is now above average financially when compared to peers. I had a difficult time announcing the Franchise of the Year award at our National Sales Meeting because I was so proud of what was accomplished.

Any regrets? I’m sure I have some, but I work to treat any regretful moments or decisions more as lessons learned. Mistakes are made, and taking risks means making mistakes. You try to learn from those errors rather than dwell on them. It’s a learning opportunity.

What can we expect from your company in the next 12 to 18 months? We’re focused on franchise sales, operational excellence, profit performance, IT advancements, international expansion, M&A opportunities, and product and customer diversification. We must continue to deliver our differentiator, The Mighty Promise, in a way that not only meets expectations, but exceeds them.